Downsizing dreams: top SEQ suburbs for retirees unveiled

Sell and move into a retirement village or downsize to a unit with a courtyard? The Great Downsizing Debate is being played out across Queensland. See the list of best and worst spots. INTERACTIVE TABLE

If you want to downsize for a happier and financially more profitable life, some of Queensland’s regional suburbs are where to look.

A national survey has found the best and worst suburbs for seniors wishing to sell their large family homes and downsize to take advantage of federal government superannuation benefits.

Leading property finance company Property Credit has listed the top places for Boomers to look to pick up a bargain and find the best bang for buck when downsizing.

Property Credit chief executive Giordano Stepancic said many aged 75 and above, had reservations about moving out of spacious homes with gardens into apartment living, preferring retirement villages, villas, or townhouses with a courtyard.

He said despite many tax and financial benefits to downsizing, the prospect of leaving a spacious family home to move into an apartment was still daunting for many seniors.

A federal government Downsizer Exemption initiative was introduced in 2018. Picture: Contributed

A tight housing market, a lack of available properties and rising buyer competition also made the process of selling up and buying smaller more complicated.

USE THIS TABLE TO CHECK OUT BEST/WORST AREAS FOR DOWNSIZING

“We delved into the optimal and least favourable suburb areas for downsizing across the nation and by capital city, aiming to guide those looking to downsize locally,” he said.

“Suburbs with a higher number of villas and townhouses tend to cater more effectively to the housing demands of the ageing demographic.

“These property types, often characterised by their single-level layouts, low maintenance requirements, and community-centric designs, naturally align with the preferences and needs of older residents.

“In suburbs with a very poor selection of villas and townhouses, older residents may find it challenging to find downsizing options that meet their needs, potentially leading to a mismatch between housing supply and demographic demand.”

Downsizing to smaller houses has financial and economic benefits for older people who can make the use of superannuation tax benefits. Picture: Contributed

Credit Property research also found different regions fared better than others for seniors wanting to downsize.

No inner-city Brisbane suburbs made the Property Credit national top 10 list, which was dominated by Perth suburbs of Nollamara, Westminster, Innaloo, Doubleview and Como and Melbourne’s Pascoe Vale, Mordialloc and Parkdale and Prahran.

Brisbane’s best spots for downsizing, according to the Property Credit survey, were Carina, Kallangur, Fitzgibbon, Taigum and Capalaba.

Although Fitzgibbon and Taigum had 1960 villas, Carina was the suburb where buyers were most likely to find a townhouse or villa to buy.

Other suburbs for downsizing which Property Credit found were popular with senior buyers in Queensland included Carseldine, Morayfield, Bellmere, Upper Caboolture, Caboolture South Forest Lake, Richlands, Ellen Grove, North Lakes, Hemmant, Wynnum West and Aspley.

But not all the news was glowing for Queensland with outer Brisbane suburbs dominating the nation’s worst list.

Property Credit data recommends keeping parents away from spending their nest egg buying on Redland’s southern Moreton Bay islands of Karragarra, Lamb, Macleay, Russell and Coochiemudlo, which topped the worst places to downsize followed by Boonah and Lockyer Valley.

Research by Property Credit chief executive Giordano Stepancic said the bay islands were the worst places to downsize in Queensland. Picture: Contributed

The islands had low rates of townhouse and smaller home options with no villas available to accommodate the estimated 1166 seniors lapping up the island lifestyle.

Moving further out to regional parts of Queensland may be the answer for those who want to sell up but not sacrifice on lifestyle, according to the Property Credit results.

Across the nation, suburbs of Labrador, Varsity Lakes, Mermaid Waters, Carrara, Toowoomba Central, Southport and Coombabah made Australia’s top 10 best regional suburbs for downsizing.

But regional suburbs in Gympie, Burrum Heads and the Fraser Coast, and those in and around the Wide Bay-Burnett District, Nanango, Mareeba, Noosa and Bundaberg topped the national list of the worst regional places for downsizing.

Mr Stepancic said the Australian housing market was witnessing a surge in downsizing among the Boomer generation and older homeowners, after a federal government initiative became the catalyst for many seniors to bolster their retirement savings.

More than 60,000 seniors nationally have sold their family homes for smaller, cheaper-to-maintain properties since a federal government Downsizer Exemption initiative was introduced in 2018.

Under the scheme, individuals over 55 can make a special contribution to their retirement fund and inject up to $300,000 from the proceeds of the sale of the family home into their superannuation. Couples are eligible for a combined contribution of $600,000.

The deal allows the after-tax money contributed to super to be taken out without paying tax again under the tax-free part of superannuation.

The government said the Downsizer super policy aimed to free up much-needed housing stock and provide practical benefits and financial incentives.

■ The information in this article contains general advice. Before making any property decisions people are advised to acquire professional financial advice.